How is brokerage calculated in India?
Brokerage in India is calculated in one of two ways: as a flat fee per executed order (typically ₹20), or as a percentage of the trade value (typically 0.03% to 0.5%). Discount brokers usually charge the lower of the two — min(₹20, 0.03% × turnover) per order — and most charge ₹0 on equity delivery. Full-service brokers still charge percentage-based fees, which can be ten times higher on large trades.
What does "per executed order" actually mean?
Brokerage is charged per executed order, not per trade or per share. A complete round trip — one buy order plus one sell order — is two orders, so a flat-₹20 plan costs up to ₹40 for the round trip. If your single order fills in multiple parts on the exchange during the same day, most brokers still count it as one order; but if you place three separate buy orders to build a position, that is three orders and three brokerage charges.
How does the min(₹20, 0.03%) formula work?
On a typical discount plan, each intraday or futures order is charged the lower of ₹20 or 0.03% of that order's value. The crossover point is ₹66,667: below that turnover, the percentage is cheaper; above it, the flat ₹20 cap protects you. Two quick examples make it clear.
| Order value | 0.03% of value | Flat cap | You pay |
|---|---|---|---|
| ₹25,000 | ₹7.50 | ₹20 | ₹7.50 |
| ₹50,000 | ₹15.00 | ₹20 | ₹15.00 |
| ₹66,667 | ₹20.00 | ₹20 | ₹20.00 (crossover) |
| ₹2,00,000 | ₹60.00 | ₹20 | ₹20.00 |
| ₹10,00,000 | ₹300.00 | ₹20 | ₹20.00 |
Why is equity delivery often free?
Discount brokers popularised ₹0 delivery brokerage as an acquisition strategy: delivery investors trade less often, so the broker earns from other streams — F&O brokerage, account charges, float on funds and DP charges on delivery sells. That ~₹15.34 DP charge per scrip on the sell day is effectively the "exit fee" of free delivery, and it is flat, so it stings more on small trades. Selling ₹2,000 worth of one stock costs the same DP charge as selling ₹2,00,000 worth.
What does a full round trip cost, end to end?
Brokerage is only one of seven charges. Take an intraday round trip of 100 shares bought at ₹500 and sold at ₹520 (order values ₹50,000 and ₹52,000). Brokerage is ₹15.00 + ₹15.60 = ₹30.60 using the min formula. On top of that come STT of ₹13.00 on the sell side, exchange transaction charges of about ₹3.03, SEBI fees of ₹0.10, stamp duty of ₹1.50 on the buy, and 18% GST of ₹6.07 on the service fees — a total of ₹54.30 against a ₹2,000 gross profit.
The same trade as delivery flips the picture: brokerage drops to ₹0, but STT jumps to ₹102 because it applies to both sides at 0.1%, and the DP charge adds ₹15.34 — total ₹131.30. Free brokerage does not mean a cheaper trade. You can verify both scenarios line by line in the brokerage calculator, and read the full charge stack in our trading charges guide.
How do full-service and discount plans compare?
Full-service brokers typically charge 0.1% to 0.5% of trade value on delivery with no cap. On a ₹2,00,000 delivery buy, 0.3% brokerage is ₹600 — against ₹0 at a discount broker. Percentage plans can still make sense if you value research, dealer support and branch service, but the difference compounds quickly for active traders: at 20 round trips a month on ₹1,00,000 positions, a 0.3% plan costs roughly ₹12,000 monthly in brokerage alone versus at most ₹800 on a ₹20-cap plan.
Which charges apply on top of brokerage?
Six more charges ride along with every order, and GST makes brokerage itself 18% more expensive than the sticker price. In order of typical size: STT/CTT (the largest statutory charge — see our STT explainer), exchange transaction charges, stamp duty, DP charges on delivery sells, SEBI turnover fees, and GST on the service components. Official rate schedules are published by NSE, BSE and SEBI, and STT rates by the Income Tax Department.
How can you keep brokerage low?
Five practical habits reduce the fee without changing your strategy:
| Habit | Why it works |
|---|---|
| Consolidate orders | One ₹1,00,000 order costs ₹20; four ₹25,000 orders cost ₹30 (4 × ₹7.50) |
| Mind the ₹66,667 crossover | Below it, percentage billing is cheaper than the flat cap |
| Avoid call-and-trade | Dealer-desk orders add roughly ₹50 per order on top |
| Exit intraday on time | Auto square-off adds a ~₹50 penalty per position |
| Batch delivery sells | DP charges are per scrip per day — selling one stock in parts across days multiplies them |
The bottom line: brokerage is predictable once you know your plan's formula, and on discount plans it is rarely your biggest cost — STT and GST usually are. Run any planned trade through the TradeProfy brokerage calculator to see all seven charges, your breakeven move and your true net P&L before you place the order.